HUL_case.docx - Indian Institute of Management Rohtak Case Study HUL – Tackling the Growth of Swadeshi Submitted By N NISARGA Hindustan Unilever

HUL_case.docx - Indian Institute of Management Rohtak Case...

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Indian Institute of Management Rohtak Case Study: HUL – Tackling the Growth of Swadeshi Submitted By: N NISARGA
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Hindustan Unilever limited “Our vision is to grow our business, while decoupling our environmental footprint from our growth and increasing our positive social impact.” These vision statement was written on the wall on to which Bamesh Babu, National Sales Manager at Hindustan Unilever, was staring to while thinking on the strategy to curb the decline in sales. The HUL’s share by value fell by 2.5% between 2011 and 2016. Bamesh Babu has a meeting scheduled with the top management team including chairman and managing director Sandeep Mehta to discuss the future strategy. The decline in the market share is mainly due to the rise of new Indian entrant Patanjali. Patanjali, is a new entrant in the Indian FMCG sector and is arguably the fastest growing company in the Indian FMCG sector. Patanjali entered the industry, which was dominated by multinational behemoths HUL – the Indian division of Unilever, P&G, Nestle, Colgate – Palmolive, J&J etc., became the game-changer and disrupted the market with their indigenous products. The Patanjali from its start in 2006 has grown rapidly and have reached the annual revenues of rupees 10000cr in 2016. The quick rise of Patanjali posed threat to the wide range of products of HUL. The market share across the portfolio declined and the sales took a hit. The Patanjali was also successful in inclining the mindset of the people towards the ayurvedic and natural products. The company now needs to develop a go-to strategy to tackle the Patanjali challenge. Company Background Hindustan Unilever Limited (HUL) is one of the India's largest Fast Moving Consumer Goods Company founded in 1933; 85 years ago. It is a subsidiary of Unilever, a British- Dutch company. The company had 35 brands spanning 20 distinct categories such as Food, Home Care, Personal Care and Refreshment products. According to the company reports, 9 out of 10 Indian households use HUL’s products. The company’s portfolio includes major leading consumer household brands such as Lux, Vaseline, Lifebuoy, Pond’s, Surf Excel, Rin, Wheel, Fair&Lovely, Lakme, Clinic Plus, Dove, Sunsilk, Closeup, pepsodent, Axe, Bru, Kissan among many others. In 2012, HUL was recognized as one of the world's most innovative companies by Forbes. With a ranking of number 6, it was the highest ranked FMCG Company. The company has 18000 employees and has a sales of INR 34619 corers (FY 17-18). Company Analysis HUL has always given much focus on promoting its brand. It has adopted aggressive advertisement campaigns through television, radio, newspaper, and magazines. According
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to brandequity economic times HUL was among the top 3 advertisers in 2016 spending close to Rs2500 crore.
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